DGH insists on separate tests for RIL's 3 gas finds in KG-D6 block

The Directorate General of Hydrocarbons (DGH) has rejected Reliance Industries' proposal for confirming natural gas finds at D-29, D-30 and D-31 along the flagging KG-D6 block through a single test, saying the three are distinct and unconnected and hence separate tests are required to establish presence of natural gas at these sites.

DGH, however, wants three separate drill stem tests (DSTs) to be conducted before the commerciality of these finds is approved. (DST is a procedure for isolating and testing the pressure, permeability and productive capacity of a geological formation during the drilling of a well.)

DGH, which is the technical arm of the petroleum ministry, has not recognised the D-29, D-30 and D-31 as discoveries since RIL has not conducted the prescribed tests to establish gas finds at these sites.

RIL, which operates the KG-D6 oil block off India's east coast along with BP, which holds a 30-per cent stake in the gas assets, insists on a single test to establish the commerciality of the three finds. The issue has been hanging fire since February 2010.

''Gas discoveries D-29, D-30 and D-31 were notified and accepted as independent discoveries, as reservoir pools were distinct and unconnected. Hence operator's submission that all three discoveries have same geological system is not adequate,'' DGH wrote back to RIL on 27 November..

DGH also insisted that three separate DSTs are needed to be completed before approving the commerciality of these finds.